Your report of the first

Social Marketing Breakfast

April 12, 2010

With the support of

Introduction : What is social marketing ?

What is social media marketing ? In essence, all activities

brands conduct on the Web with a social dimension: sharing,
conversations, through existing social networks or own
channel.

What's so attractive? Well, you heard about 'joining the

conversation'...Social marketing will help you grow your
business through more engaged consumers, more active
ambassadors .

So we thought it would make sense to explore the 4 myths, 3

plagues and picked 2 great examples of the arena, since
everyone has some sort of 'a priori'.

With the support of

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Agenda

4 myths

3 plagues

2 great examples

1 conversation
With the support of
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 Myth 1 – We have too many customers
As some of you may have heard, we sometimes refer to a study made by Catalina Marketing in
the US,
tracking the real shopping behavior of 54 millions americans. The results ? On average, 80%
of the volume of a typical brand is made by 2.5% of shoppers. In Belgium, this would mean
100 000 shoppers. The concept of a 'mass product' is dead for FMCG

11% PPC

▪  2.5% = ‘Pivotal Point Consumers’,

80% of sales

▪  In Belgium, this accounts for 100 Tropicana Pure Premium

000 shoppers for an average brand 7.9% PPC 0.9% PPC

▪  5 to 10% are lead users: 5 to 10 000

people (influent, early adopters)

Tropicana Pure Premium No Tropicana Healthy

Pulp Heart

4 With the support of

SOURCE: PPC - Catalina marketing study (actual behavior of 54 Millions of US citizens)
 Myth 2 – consumers do not care about online
conversations
•  -Myth 2: Consumers do
not care about online
conversations.

•  Our study with ANT

Research in October
2009 showed that, while
a minority indeed will
conduct conversations,
other are very interested
to see it.
•  If they see the brand
listens and respond, they
declare that it would
strongly enhance their
perception of the brand

With the support of

SOURCE: ANT Research, n=941, October 2009, Belgium 5
 Myth 3 – If they do, we would be
overwhelmed
While a silent majority is looking for brands to react, only a minority,
typically between 5 to 20% (for most engaged brands) will actually want to
interact. Net, we found that in Belgium, over a couple of months, a brand
could expect between 500 and 2000 interactions. No need to hire an army.

In Belgium, a
typical brand
could expect a
~500
(average)-200
0 (maximum)
to interact

6 With the support of

Myth 4 – There is no ROI
The US has furiously embraced social media over the last years. There is ample
evidence that a customer self-support forum is providing large impact in terms of
cost savings (large Q&A base, support by other consumers), and conversational
marketing has been largely used to boost sales and take advantage of the viral and
amplifying effect of Twitter and Facebook. Last, we found a high correlation between
early adopters and influencers through our studies. Chances are high that people
who do care interacting with your brands are as well very active on social networks
and in 'live' events about your brand. Chances are high that they will be the first to
adopt your new products, the early adopters that are so critical to turn a new product
into a success. Don't miss them.

SOURCE: Will Pate.org

With the support of

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 Convinced ? Hold on a bit more.

With those that made the jump, we found as well unfortunate habits already,
what we call the "3 plagues" of social media:

- Plague 1: Too simple: Use social media as another 'push' channel.

- Plague 2: Too aggressive: Campaign-based thinking.

-Plague 3. Too passive: ROI vs ROI

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 Plague 1 – Use social media as just
another “push” channel
Many brands just copy/paste their newsfeed to Facebook, Netlog, Twitter...Wrong. Each
channel has its specificities, and most should be used to engage consumers in a dialogue.

For instance, Jetblue, the US airlines, is using Twitter mostly to respond to enquiries from
customers, and tailor its messages.

Razwar, an ecommerce challenger in Belgium proposing shaving solutions at a fair price, is

filtering messages about 'shaving' on Twitter and sending funny replies to followers,
sending them to its web sites.

Do you:
-  Respond or acknowledge consumer statement
and questions on Facebook fan page ?

-  Do you reply to ‘@’ statement on Twitter ? Or

even to monitored messages about you but not
addressed to you ?

-  Do you move from Web monitoring to Web

engagement ?
SOURCE: Will Pate.org With the support of 9
Plague 2 – Campaign-based thinking
Social marketing does not fit really “There's no easy
well into 'campaign-based
cure for
thinking', which is the usual rythm
of companies and agencies. off campaign-
based thinking.
You are not at war, but wanting to Campaign-to-
engage with consumers, one by campaign and
one. Because it takes time to quarter-to-quarter
plan, prepare for it, and gain
thinking prevents
results.
marketers from
Those can be substantial, but will reaping the long-
take some time. You need to build term benefits of
the right audience for you step by social marketing.”
step, and invest a little, every day. SOURCE: The 10 plagues of social
media, Media Post’s
social media insider

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 Plague 3 – Flawed and slow decision-
making process

ROI vs ROI
There is a lot of talk about 'Return on Investment'. What is often
forgotten is the importance of 'Risk of Inertia'. Your competitors will put
their acts together. Consumers will get upset not to find you or your
inertia - their sophistication and expectations have skyrocketed over the
last years.

As Steve Ballmer, CEO of Microsoft put it in a speech made in Belgium:

'for the first time in history, marketers are trailing the consumers'. Don't
let them trail you further and put a sense of urgency into it.

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Example 1 – Starbucks: global leader
in social media
•  One person dedicated to
Twitter

•  Moved from 200k to 3.5

Millions Fans on Facebook
through viral effect

•  Active on own ‘Starbucks

idea’ web site

•  Central coordination team

of 6 people

•  Greatly championed by
CEO

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Example 2 – Danone@Brandialog

•  Response rate: 60% (could still be

better)

•  Quality of responses: high

•  Acknoweldge the issue

•  Answers appropriately

•  Take the opportunity to do

personalized marketing

•  Responds even to simple ‘fan’

message: great

•  One issue: never replied to the

suggestion of ‘Danette Speculoos’:
shame ;-)
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Our 4 steps method for
conversational engagement

Define your Establish Get started

Map existing priority engagement with
situation re. targets to channels concrete
engagement engage & and uses initiatives,
what for quickly

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7 Concrete tips for your
conversations
If you want the list or more, give us a call:

Patrick Willemarck +32 475 23 34 34

Alexandre Vandermeersch +32 491 08 80 09

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 Our services: enabling engagement
through the Web
CONSULTING PRIVATE DIALOG CUSTOM DIALOG
•  Team combines unique •  Qualitative research : a •  Do not re-invent the
expertise in marketing, private, confidential wheel! With our dialog
consumer insights and micro-community in a engine, make quickly
communication neutral space – no your web site social for:
investment required -  Dialogue marketing
•  We help you establish -  Customer service
your engagement •  Happens within or outside -  Product reviews
strategy & roadmap in Brandialog.com, a neutral -  Feedback,…
and out social medias place to interact with
brands •  We provide animation
•  We find creative, and moderation as a
concrete solutions to service
boost your sales and
marketing

1
6
Agenda

4 myths

3 plagues

2 great examples

1 conversation
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Did you miss the conversation ?
Don’t miss the next one on April 27th, 8am.
With Stephan Salberter from Deutsche Bank

Entry is free but make sure you book your place by

sending a mail to [email protected]
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